A MAJOR supply deal will see South Australian apple and pear juice make its way into more Australian ciders.
JVJ Co, a partnership between the Lenswood Apples and Rivercorp Land & Water Limited will supply global beverage company Lion with 3.5 million litres of apple and pear juice annually under the new deal struck last month.
Lenswood Apples is the largest packer and marketer of apples in South Australia and Rivercorp one of the State’s largest growers.
JVJ Co currently produces more than 100,000L of juice per week.
Founded in late 2015, JVJ Co runs an apple processing and juicing facility in Monarto, drawing apples from Lenswoods and Rivercorps individual apple supply.
JVJ Co’s CEO Fergus McLachlan said it was a massive turning point for the company.
"This will see us double our staff,” he said.
“This deal will see Lion shift from mostly Victorian apples to now using locally grown South Australian apples in their ciders.
“The apple industry in this State is undergoing some significant challenges at the moment but the ability to create a profitable market for our second grade fruit by juicing has offered a genuine buffer for our business."
Lion SA has a dedicated cidery on site at 107 Port Road, Adelaide which produces ciders for the whole of Australia. It was officially opened in June 2014.
About 11 million litres of cider products are made each year, with fresh juice accounting for 4.8 million litres.
Products include James Squire Orchard Crush Apple/Pear ciders; Kirin Apple/ Pear ciders; 5 Seed ciders, among others.
The deal with Lion follows a $9.1 million grant Rivercorp received through the Irrigation Industry Improvement Program (3IP), a joint initiative of the State and Federal Government.
The grant was used to build a brand new juicing and storage facility and establish improved shade netting across part of the company’s Riverland orchards.
The 3IP is funded as part of the $265 million South Australian River Murray Sustainability program, which is backed by the Federal Government and is being delivered by PIRSA over six years to mid-2019.
“The South Australian River Murray Sustainability program has helped us secure a new sustainable income source but more importantly the long-term flow-on effects in terms of employment and economic spin-offs for local businesses, schools, supermarkets and the wider industry are immense,” Mr McLachlan said.
